The NSE IPO is finally moving forward after the Securities and Exchange Board of India (SEBI) gave its no-objection certificate. But the National Stock Exchange (NSE) has clearly said it will not list its shares on its own platform.
NSE Managing Director and CEO Ashish Chauhan said that Indian rules do not allow stock exchanges to list on their own trading systems. According to regulations, an exchange cannot regulate itself. So, NSE must list on another recognised exchange.
NSE IPO Likely to List on BSE
For the NSE IPO, the exchange is expected to list on the Bombay Stock Exchange (BSE) or another approved platform.
Ashish Chauhan said it will take a few months to prepare and file the Draft Red Herring Prospectus (DRHP). After that, SEBI will review the document and give final approval.
NSE IPO Will Be Offer for Sale (OFS)
The NSE IPO will be an Offer for Sale (OFS). This means:
- NSE will not raise new money.
- Existing shareholders can sell their shares.
- The company itself will not receive fresh funds.
Currently, nearly 1.95 lakh shareholders own 100% of NSE.
NSE IPO Valuation Rumours
There are reports that the NSE IPO valuation could be around $50 billion. However, Ashish Chauhan said such numbers should be taken carefully. The final price will depend on market conditions at the time of listing.
Merchant bankers will decide the price based on:
- Company profits
- Market trends
- Industry comparison
- Economic conditions
Why NSE Cannot Self-List
In India, stock exchanges cannot list on their own platforms because of conflict-of-interest rules.
Around the world, some stock exchanges like Intercontinental Exchange, which owns the New York Stock Exchange, are themselves listed on the stock market. But Indian laws do not allow this system.
So, NSE must follow Indian regulations.
NSE IPO to Improve Transparency
Ashish Chauhan said the NSE IPO will improve transparency and governance. Once listed, NSE will have to follow strict disclosure rules. This means:
- Regular financial updates
- More public accountability
- Better corporate governance
He gave the example of Life Insurance Corporation of India (LIC), saying governance improved after its listing.
India’s Market Good for Small Companies
Chauhan also said India has built a strong and affordable capital market. In countries like the US, listing costs can be very high. But in India, even small companies can raise money easily.
He said Indian markets allow companies to raise money from Rs 1 crore to Rs 1 lakh crore, depending on their size and needs.
Conclusion: NSE IPO Is a Big Step
The NSE IPO is an important step for India’s financial market. Even though NSE cannot list on its own platform, it will list on another recognised exchange.
With SEBI’s approval in place, investors are now waiting for the official DRHP filing and IPO launch date.
The NSE IPO is expected to increase transparency, improve governance, and give liquidity to existing shareholders.
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